TBO has agreed to acquire US-based luxury travel wholesaler Classic Vacations from the Najafi Companies in a deal worth up to $125 million. The move gives TBO access to Classics' 10,000-strong travel advisor network, adding scale in North America's premium outbound segment. Classic will continue to operate as an independent brand, leveraging TBO's technology and global distribution.
TBO is headquartered in Gurugram, has announced its agreement to acquire Classic Vacations LLC, from Phoenix-based The Najafi Companies. Thus, marks a significant step in its expansion into North America. The deal is valued at up to USD 125 million. Classic Vacations, a leading luxury travel wholesaler in the US, reported revenues of USD 111 million and an opening EBITDA of USD 11.2 million in the financial year ending December 31 2024. With nearly five decades of brand recognition, the company has established a network of over 10,000 travel advisors and suppliers across the premium segment.
The acquisition combines TBO's technology-led distribution platform. With Classic's advisory network to strengthen their joint position in the luxury outbound market. Classic will continue operating as an independent brand while integrating TBO's global inventory and digital tools.
"We are thrilled to bring Classic Vacations into the TBO family the company's longstanding delivery of outstanding services has earned the trust of otis more than 10,000 travel advisees in the US and their end customers, making them a seamless fit for our vision moving forward in the fast-evolving travel and tourism industry," said Gaurav Bhatnagar, co-founder and Joint Managing Director, TBO.
Ankush Nijhawan, co-founder and Joint Managing Director, TBO, added: "This acquisition continues to further our strategy to invest in both organic and inorganic growth opportunities. As we start working on integrating Classic Vacations with TBO, we will remain open to similar strategic alliances in the future."
Melissa Krueger, CEO of Classic Vacations, commented: "TBO connects us to its first-class technology platform, unlike what the wholesale market has ever had access to, allowing us to bring even more resources, tools and insider connections to our valued travel advisors. Together we are strengthening Classic Vacations' position as the premier luxury partner in the market while extending our reach onto the global stage."
Classic Vacations was acquired by The Najafi Companies in 2021 from Expedia Group. "This acquisition and partnership is an ideal next step for our portfolio company Classic Vacations, and we are happy to have worked successfully with them for the last four years, maximising the company's strength and expertise in luxury travel," said Jahm Najafi, founder and CEO of The Najafi Companies.
Moelis and Company LLC acted as exclusive financial adviser and Ballard Spahr LLP as legal advisor to Classic Vacations. Colley LLP served as a legal advisor and PwC as financial and tax advisors to TBO.
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